‘We will never back down’ North Korea rejects calls for peace and prepares for WAR

South Korean President Moon Jae-in called for the two nations to hold diplomatic talks and even proposed that both suspend acts of hostility along on July 27.

But the North has flat-out rejected Mr Moon’s proposal after the democracy carried out a bombing exercise with US forces earlier this month.

North Korean propaganda rag Chosun Sinbo reported that tensions were mounting ahead of the anniversary to mark the end of the Korean War.

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WAR: Kim Jong-un is preparing for an armed conflict against South Korea

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It added: “If the proposal is based on South Korea’s subversion to the US and hostility toward the North, Seoul cannot expect Pyongyang’s positive response.

“South Korea should show a willingness to improve its relations with Pyongyang not by words, but with action."

It continued: “It remains to be seen whether South Korea can make a decision to suspend the drills with the US, a main source of tension on the Korean Peninsula.”

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STAND OFF: Tubby Kim rejected the South's calls for peace

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A monkey riding a goat

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The newspaper added that Mr Moon’s handling of any US-South Korea military drills would inform Kim’s policy towards his southern neighbour.

Tensions between the two countries have reached breaking point after North Korea launched an ICBM — capable of hitting targets in Alaska and Hawaii.

The South responded immediately by meeting with allies and beefing up its navy to include a new submarine.